Home Daily Commentaries CAD sees bump on lower inflation

CAD sees bump on lower inflation

Wednesday 21 December, 2022

Daily Currency Update

The Canadian dollar is up in pre-market trading as inflation in Canada came in lower than the same number in the previous month.  Inflation for November was a 6.8% headline compared to the 6.9% we saw last month.  Core inflation stayed steady at 5.8%.  A big piece of the drop was a non-core reduction in energy prices including gasoline.  The biggest driver of inflation was a 1% increase in food prices from the previous month.  Year-to-date, food prices in Canada are up 10.4%.

Key Movers

The USD is down against the Euro, up against the Pound and steady against most other major currencies causing the USD index (DXY) to drop slightly under 104. With no major data today, the Greenback will be at the hands of general market trends with oil climbing over $77 a barrel and all the North American markets heading towards a positive open following bullish sessions in the both Asian and European markets. The Euro is up mildly against the greenback after consumer confidence in Europe’s biggest economy showed a bigger than expected improvement.   The Gfk confidence data came in at -37.8, better than both the -40.1 from last month and the expected -38.

Expected Ranges

  • EUR/CAD: 1.4430 - 1.4492 ▼
  • GBP/CAD: 1.6476 - 1.6586 ▼
  • AUD/CAD: 0.9066 - 0.9135 ▲
  • USD/CAD: 1.3587 - 1.3654 ▼